Bidding is underway in a federal auction of 700-megahertz wireless frequency that can penetrate underground in parking garages, elevators and other places where cellphones often conk out.

"What that means for consumers is that the service providers that buy the spectrum are able to provide more advanced, high-speed services that we're all consuming with our smartphones with streaming video," said telecom expert and tech blogger Mark Goldberg.

The prime frequency also requires fewer cellphone towers because of increased signal strength.

"Soon, this high-quality spectrum will be accessible to Canadian consumers for use on the latest smartphones and tablets," said Industry Minister James Moore in a statement Tuesday after launching the auction.

But, hours before the auction started, Wind Mobile withdrew from the process when its financial backers pulled out.

That left only three large bidders — Bell, Rogers and Telus — denting the feds' efforts to beef up the competition those companies face.

"Unfortunately, mixed messages, confusion and mismanagement by the Conservative government has repeatedly delayed this important auction and created increased uncertainty for investors," she said in a statement.

While Goldberg also said federal policies "failed," he noted consumers could still benefit as Wind tries to compete with companies bidding for the newly available signal.

"If anything, it may make Wind respond with more aggressive pricing because they don't have the ability to match the data speeds of the carriers that are going to get this spectrum," he said.